Tailors and Textiles Workers Union v Vajas Manufacturers Ltd [2014] KEELRC 514 (KLR)
The bottom line
#Kenya's Industrial Court rejected an employer's refusal to agree new CBA terms and itself awarded better redundancy, retirement, and termination benefits for workers.
What this practically means
#Executive summary
#Key legal issues
#Reasonableness of the respondent's refusal of the proposed CBA clauses on redundancy, retirement and termination
The refusal was unreasonable, mischievous and poor industrial relations practice; the court determined the clauses itself.
The parties negotiated, reached a deadlock, and conciliation failed, leaving the court to resolve the stalemate. The court found the respondent's submissions evasive and not intended to resolve the labour relations stalemate, and concluded the refusal without any counter offer was unjustified.
Redundancy severance pay
Employees declared redundant to be paid 21 days' pay per completed year of service.
The union sought 25 days (up from 18 days negotiated in 2010) citing inflation and cost of living; the respondent argued redundancy follows poor performance and that Section 40 Employment Act provides 15 days. The court fixed an intermediate figure of 21 days.
Retirement age
Retirement age increased to 60 years for all employees.
The union proposed raising retirement from 50/45 to 60 years for both sexes, arguing 60 years is the public policy, mood and opinion. The respondent said the law left retirement age to the parties' discretion. The court adopted 60 years for all employees.
Termination benefits
A graduated service pay scale awarded: 15/17/18/22/26 days per completed year of service by length-of-service band.
The respondent opposed increases on the ground that employees are NSSF members remitting to a fund converting into a pension scheme, and cited Section 35(5) of the Employment Act on service pay. The court nonetheless awarded a graded scale, slightly below the union's proposal.
Legal principles established
#- A party's unreasonable refusal of negotiated CBA clauses without a counter offer constitutes poor industrial relations practice which the court will resolve by determining the clauses itself
- CBAs should ordinarily provide better terms than the statutory minimum
Court orders
#- 1.Employees declared redundant to be paid at 21 days per each completed year of service
- 2.The retirement age be increased to 60 years for all employees
- 3.Employees terminated be paid: 0-5 years - 15 days pay per completed year of service; 6-10 years - 17 days; 11-15 years - 18 days; 16-20 years - 22 days; 21 years and above - 26 days
- 4.The costs of the suit to be borne by the respondent
- Jurisdiction invoked
- Reference of a negotiated labour dispute to the court by the Ministry of Labour after failed conciliation under the Labour Laws of Kenya (Employment Act 2007)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Tailors and Textiles Workers Union v Vajas Manufacturers Ltd [2014] KEELRC 514 (KLR)", Case Analysis (2014). Cause No. 497 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/514/eng@2014-04-24
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.